Author: Anand Pv

startup-tips

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Introduction

Starting a business is a challenging task for entrepreneurs/founders. An entrepreneur who is preparing to launch a startup may be in search of books. In addition, reading books helps to do things right by looking into the experience of innovative and successful entrepreneurs. Given below are the top 11 must-read books relating to startups for any new founder:

1. Zero to One

“Zero to One” is the best startup book written by Peter Thiel (co-founder of Paypal). The word meaning of “Zero to One” means starting ground zero and building a new foundation. He explains that one should think out of the box and create a new brand to be the leader in the market. This book is full of unique and challenging ideas that are hard to ignore for a founder who seeks to survive in the market for a prolonged period and can dare their predetermined belief about what startups or small businesses resemble. One of the best lessons learned from this book is how big companies can set up through irregular insights and conflicting beliefs. No doubt, this book is worth reading.

Image shows startup book written by Peter Thiel

2. The Hard Things About Hard Things

This book by Ben Horowitz (entrepreneur of Silicon Valley) is about Ben’s journey to success. “The hard things about hard things” is an easily readable book that offers sincere advice in case of difficult decisions while operating in a startup like funding, running, and managing with a first-hand approach. Read this book if you plan to start a new venture, no matter what your business is. Along with starting a business, it also covers topics relating to buying, selling, and investing in the business. This book is more suitable for SaaS founders.

The hard things about hard things

3. The Lean Startup

“The lean startup” by Eric Ries is one of the bestseller books in the market. According to Ries’ view, every founder should treat a startup as an experiment. He discusses his business failure in the lean startup and how he spent too much time on the initial product launch. This book teaches you how to operate a new startup with minimal resources and effectively optimize capital and human creativity. His “build-measure-learn feedback loop” hypothesis is presented in this book. It focuses on how businesses should stay away from developing comprehensive strategies and use the idea to eliminate market uncertainty. Further, it explains the lean startup approach in detail and persuades why you should use them. Startup entrepreneurs highly recommend this book.

The lean startup written by Eric Ries

4. Who

The book named” Who” was written by Geoff Smart and Randy Street. Hiring is a complex procedure. In many cases, the biggest mistake made in a startup is hiring.” Who” covers simple steps to improve the hiring process. The author suggests A method for optimal hiring. The A method conveys two basic steps- Create a scorecard (it describes what you want a candidate to accomplish, like desired outcomes, and competencies in a particular role) and Test if the candidates fit the scorecard. It teaches you how to interview and evaluate employees, how to avoid single hiring mistakes and ensure you’re hiring the right person in the right roles.

Image of book called Who written by Geoff Smart and Randy Street.

5. Founders at Work

“Founders at Work” by Jessica Livingston (founding partner at Y combinator) conveys engaging interviews with founders of most popular startups such as Steve Wozniak (Apple), Caterina Fake(Flickr), Mitch Kapor (Lotus), Max Levchin (PayPal), Sabeer Bhatia (Hotmail). This book shows how these popular technology companies started, how determined and creative they are, how they reacted to situations, and what they did to nurture them. You should read this book if you become an entrepreneur to get an idea about the possibilities and challenges in startups.

Founders at Work startup book

6. Will It Fly

The book named “Will it fly” was written by Pat Flynn. If you are looking for an excellent book for a startup, here it is. Perhaps the most challenging thing about beginning a business is that your idea could drop. “Will it fly” explains your business idea to set yourself up for success and suggest a few tips for running a business in the right direction. The author provides case studies and action-based examples that ensure you get a good idea before you waste your time, money, and effort. You can also discover how to verify and test your theory to see if it can work, how to create a business that fits your skills and goals, how to think when you assess the current market, and so on.

Image of Book called Will it fly

7. The Art of the Start

Guy Kawasaki wrote this book. He talks about essential topics for startup founders like finding a business idea, pitching potential investors, and preparing business models. This book The Art of the Start also covers topics like the art of launching, positioning, socializing, and advertising your startup. Further, it also gives helpful advice for those who intend to launch a new product/service. So whether you’re an entrepreneur or want to add more entrepreneurship within any firm, this book will surely help you get on the right path.

The art of start book

8. E-myth Revisited

“The E-myth Revisited” is one of the best books for startups, written by Michael E Gerber, focusing on the myths entrepreneurs have about building a business. He believes that running a business and having technical skills are two different things. Therefore spending no time on the business and spending too much time on business is why most startups fail within starting years. The author explains his growing startup from an entrepreneurial perspective in this book. He also provides powerful insights for running a business confidently and efficiently. He suggests that business people should play the role of three people equally-. They are Entrepreneur, Manager, and Technician. And focus on time to make systems dependent (Your business is the system, not the product you’re selling to consumers). In short, this book is a very entertaining and valuable guide for readers.

The E Myth Revisited startup book

9. Crossing the Chasm

“Crossing the Chasm” is a marketing book by  Geoffrey A Moore (Software startup founder).  The book covers the marketing of high-tech products during the early start-up stage. He also explains a gap or chasm between innovators and the mainstream market, so the author dedicates various steps that a high-tech company requires to negotiate through this chasm. According to Moore, marketers should consider only one group of consumers at a time. Besides, he offers outstanding strategies and advice for taking your business from early adopters to mainstream consumers. The success of this book led to a series of follow-up books and consulting companies.

Image of book called Crossing the Chasm

10. Built to Sell

“Built to Sell” is a fun read book by John Warrillow, sharing his personal experience about selling his business. The business lesson that Warrillow teaches is translated into a simple story that makes for quick reading. He shows precisely what it takes to create a strong business that can flourish long into the future. He also talks about essential tips for creating value for the business and practical insights for selling a successful business product in the market.

Image shows Built to sell book

11. Rework

The book Rework is written by Jason Fried. concept of Rework, like other business books, teaches entrepreneurs the art of productivity rather than corporate strategy and management. The book’s central theme is employing competition, productivity, advancement, and personal evolution to expand one’s business. It dispels business fallacies, offers entrepreneurs a fundamental viewpoint, and it aids in seeing that challenges are frequently used as justifications. Even if many of the book’s other business-related observations and recommendations are unconventional, they have a significant influence.

Image of startup book called Rework written by Jason Fried

Final Thought

Knowledge is power, and the best place to gather knowledge is through books. Reading startup books helps to increase our imagination and push the business forward. Starting a business may be a terrifying, time-consuming endeavor. However, it might be helpful to occasionally get outside your brain. Also, remember that many successful individuals have been in your current position. One of the books on this list could contain advice for you no matter what problem you’re having running your company.

The most crucial thing to learn from startup business books is to let go of your preconceived notions and be receptive to new information. Make an effort to connect your company with the book’s setting. But if you are too lazy in reading books, you can get more startup guides from our experts. So, without wasting much time, book a slot with us. Scaalex is a team of top domain experts and financial consultants. We worked closely with 270+ startups to build financial projections, valuation reports, business plans, and funding advisories. If you are among the startups lacking adequate financial insights, reach out to us to attain exceptional execution and fundraising results!

startup-funding

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Intro

Seed funding is a crucial stage of a startup’s development, providing the necessary capital to bring an idea to life. Seed funding is the initial investment that a startup receives to get off the ground and cover costs associated with development, marketing, and operations. However, securing seed funding requires entrepreneurs to understand the different fundraising stages, create a compelling pitch, and identify the right investors to approach.

In this blog, we’ll guide you through each stage of seed funding and also discuss its importance, the types of investors you can approach, the factors that investors consider when evaluating startups, how to get seed funding for your startup, and so on. Let’s get started then.

What Is Seed Funding?

Seed funding also known as seed money/seed capital/seed investment refers to the initial capital that a startup receives from investors or venture capitalists to launch and develop their business idea. This type of funding typically occurs during the early stages of a company’s growth, when the business model is still in development and the product/service is not yet fully functional.

Seed funding is usually used to cover the costs of product development, marketing, and operations, and can range from a few hundred thousand dollars to a few million dollars, depending on the needs of the startup.

How To Get Seed Funding?

Obtaining funds to launch a product/service is critical for many startups. To cover this risk, they start approaching external sources. Seed funding, also known as seed money/seed capital/seed investment, is the first key round of funding early-stage startups. Generally, the process may take 3-6 months. It may vary according to startup stages, intended to finance the initial stage operations of startups such as product development, market research, and technology development, contributing to a strong foundation for successful startups. All you need is a practical idea with a strong business plan and management team to convince investors that you have a product prototype or proof of concept for your business. Once the startup establishes a user base and persistent revenue, they can proceed to fund rounds – Series A, B, C, and D. But the founder must have an exact picture of when and how to raise seed funding effectively.

Different Series Of Funding

Series A:

Series A round is used to optimize its user base and product offerings. The venture capitalist is the most common source of funding for series A. The expected capital raised is between $2-$15 million.

How Series A funding works?

During a Series A funding round, the startup’s founders and existing investors will seek out venture capital firms or other institutional investors to provide additional funding. The investors will evaluate the startup’s growth metrics, business plan, and management team before making a decision to invest.

Series B:

In this stage, startups are ready for their development stage. They have substantial knowledge about their product/market and decide to expand to support the company’s growth to the next level. It can acquire up to $7 million to $10 million for funding.

How Series B funding works?

The funding provided in a Series B round is typically larger than that of a Series A, and the valuation of the company is usually higher as well ( between $30 million and $60 million). This allows the company to continue scaling its operations, expanding into new markets, and investing in research and development. The funding may also be used to acquire other companies, hire key executives, or strengthen the company’s balance sheet. Both Series A and B have some similarities in terms of the funding process and the investors involved, with the main difference being additional venture capital firms taking part in bigger investments.

Series C:

Series C funding occurs when a company has already achieved significant scale and is looking to continue growing rapidly. This funding helps to develop new products, expand into new markets or even acquire new companies. This stage sets a goal of raising $26 million on average.

How Series C funding works?

In a Series C funding round, institutional investors such as venture capital firms, private equity firms, hedge funds, and corporate investors are typically involved. These investors are looking for high-growth startups that have already established a significant market presence.
Given the amount of capital required in a Series C funding round, investors often look for opportunities to deploy large amounts of capital into a single investment. This means that the investors involved in this funding round are often larger and more sophisticated than those involved in earlier rounds of funding.

Series D:

Most startups finish raising capital with series C. But when startups can’t achieve targeted goals, they may choose to raise Series D round. It is also known as a Down round.

Sources Of Seed Funding

1. Bootstrapping

Bootstrapping is a self-starting process where founders put their wealth or savings without external help. A small amount of money is set apart for the bootstrapping process at the time of starting a venture. Generally, founders may rely on internal cash flow and business revenue by substantially increasing their valuation or seeking funds from friends and family. It is an inexpensive form of funding because they need not want to return borrowed money from others. After all, it brings financial pressure on them to gain more profit. GoPro, Whole Foods, and Under Armour are some of the companies that have funded through bootstrapping.

2. Corporate seed funds

Another vital source of funding is Corporate seed funds. Big tech companies like Apple, Google, FedEx, and Intel regularly provide them with seed money if they think that startups can be a source of profit or talent for their pool. This funding can contribute to lucrative acquisitions in the future and also brings excellent visibility for startups.

3. Incubators

Business incubators are collaborative programs run mainly by private and public entities that provide all sorts of services ranging from management training, expert advice, office space, and venture capital financing to those at the idea stage. There is no need time limit to the duration of the services provided by Incubators. They invest a small amount of funding and usually don’t take equity from startups. Nevertheless, it helps to shape the business idea perfectly. The main difference between incubators and accelerators is that incubators focus on early-stage startups, whereas accelerators focus on scale-up startup growth.

4. Crowdfunding

Crowdfunding is the fastest way to raise a small amount of finance from a large number of people. The word “crowd” in crowdfunding refers to the individual investors or enterprises that provide finance using web-based platforms and social networking sites with no upfront fees. It provides funds needed to get a startup off the ground in return for a potential profit or reward. It would be an alternative finance option if you struggled to get bank loans or traditional funding. Equity crowdfunding, Debt crowdfunding, Donation-based crowdfunding, and Reward-based crowdfunding are some of the types of crowdfunding.

5. Accelerators

Accelerators (also known as seed accelerators) will be the startup’s first external finance in most cases. It’s a set timeframe program designed to provide sound advice, mentorship, and resources to support startup growth on a public pitch day or demo. A good startup accelerator scales up business growth for a certain percentage of equity. Y Combinator, TechStars, and Brandery are some of the well-known accelerators in India.

6. Angel investors

Angel investors (also known as seed investors, business angels, and angel funders) are high-net-worth individuals who provide capital in return for ownership equity or convertible debt. Apart from financing, it brings expert advice, stable growth, and a greater return rate. They often save startups at the risk of failing; that’s why they are called Angel investors and invest in small amounts and take more risks when compared to venture capitalists. They may conduct detailed research, competitive analysis, and several rounds of meetings before investing. Angel investors who earned at least $2,00,000 in income or a net worth of $1 million in assets are considered accredited investors by SEC(Securities and Exchange Commission). AngelList, Lead Angels, and Indian Angel Networks are some of the significant Angel networks in India.

7. Venture Capitalist

Venture Capitalist (VC) is the most common method of seed funding. VCs are institutions that finance a significant amount of capital from large companies or corporations. Beyond the budget, it offers services such as industry insights, mentorship, support, and connections. It’s not an easier task to pitch VCs as they tend to invest in startups that show brilliant business plans, strong presentations, and wide-ranging market and growth potential. They usually demand a high equity stake and participation in management decision-making. The average venture capital investment may range from $1 million to $100 million and involves narrow investment criteria.

8. Friends & Family

Friends and family are one of the common sources of seed funding for most early-stage startups. They are often willing to invest in the entrepreneur’s vision and can provide the initial capital needed to get the business off the ground. Seed funding from friends and relatives is typically less formal than traditional seed funding sources, and the terms of the investment can be more flexible. However, it is important to approach them with a solid business plan and clear expectations regarding the investment, in order to avoid potential conflicts down the line which could affect personal life.

State Government’s Seed Funding Schemes:

  • Kerala Govt implemented the Seed Support Scheme to provide monetary help to startups (having an upper limit of INR 15 lakhs ). It aimed to promote innovation-based enterprises’ creation and development, thereby encouraging growth in Kerala state through providing venture creations and increased job opportunities. Kerala Startup Mission enforced this scheme.
  • Govt of Karnataka provides seed funding under the “idea2PoC” program of the Karnataka Startup policy. It aims to provide seed funding to ideas or concepts which are yet to validate the proof of concept. It’s granted only one time, having an upper limit of INR 50 lakhs, and provided in installments over a maximum period of 2 years.
  • Govt of Haryana granted a seed fund of INR 3 lakhs for the authenticity of ideas, prototype development, traveling costs, and expenses for carrying out the initial activities of startups.
  • The Government of Bihar will give a seed grant of up to INR 10 lakh as an interest-free loan for furnishing authenticity of ideas, prototype development, assistance towards traveling costs, and almost all expenses required for setting up startups within ten years.
  • Seed Capital Fund Scheme turned an essential component of the Sher-e-Kashmir Employment and Welfare Programme for Youth (SKEWPY) into the Govt of Jammu and Kashmir (JK) initiative. It is a one-time grant that aims to provide seed funds up to INR 7.5 lakh to contribute to employment opportunities among youth and make business plans profitable.

Getting Seed Funding: Steps Involved

Step 1: Determine What Type of Funding You Need

Before seeking seed funding, it is important to determine the type of funding that is most appropriate for your startup. Seed funding can be in the form of equity, convertible notes, or simple agreements for future equity (SAFEs). Each type of funding has its own advantages and disadvantages, so it’s important to consider which option aligns best with your business goals and needs.

Step 2: Determine How Much to Raise

Once you have decided on the type of funding you need, the next step is to determine how much capital to raise. This will depend on the stage of your startup, your business goals, and your financial projections. You should create a detailed financial plan that outlines your expected expenses and revenue projections for the next few years.

Step 3: Create a Pitch Deck

A pitch deck is a visual presentation that outlines your business idea, market opportunity, financial projections, and team. It should be concise, engaging, and persuasive. A pitch deck typically includes slides that cover the following topics:

  • Problem: Define the problem your product or service is solving.
  • Solution: Describe your product or service and how it solves the problem.
  • Market: Define the size of the market opportunity and target customers.
  • Business model: Explain how your company plans to generate revenue.
  • Competition: Describe your competitors and how your product or service is unique.
  • Team: Introduce the key members of your team and their expertise.
  • Financial projections: Outline your revenue projections, expenses, and funding needs.

Step 4: Meet With Investors

Once you have a pitch deck, you can start meeting with potential investors. This can include angel investors, venture capitalists, and even family and friends. You can also attend networking events and pitch competitions to connect with investors.

When meeting with investors, it’s important to be prepared and professional. You should be able to answer questions about your business plan, financial projections, and team. It’s also important, to be honest, and transparent about any risks or challenges your business may face.

Step 5: Negotiate Terms

If an investor is interested in funding your startup, you will need to negotiate the terms of the investment. This can include the amount of funding, equity stake, and other key details. This is typically done through a term sheet, which outlines the main terms of the investment.

It’s important to seek legal advice when negotiating the terms of the investment to ensure that you fully understand the implications of the agreement.

Step 6: Finalize The Deal

Once the parties agree on the terms, the investor will provide the funding to the startup in exchange for an equity stake. At this point, the parties must sign legal documents to finalize the deal.

We Help You Raise Funds Effectively

Looking to raise funds for your startup? Our financial modeling service can help. We work with you to create a detailed financial model, identify sources of funding, develop a pitch deck, and provide ongoing support throughout the fundraising process. Our expertise and guidance can help you increase your chances of securing seed funding and kick-starting your business. Contact us to learn more about our services.

Seed Funding FAQ

1.) How much is seed funding?
Seed funding round amount typically ranges from $500K to $2M. But this can vary depending on factors like location, industry, the track record of the startup founder, and more.

2.) What documents are needed for seed funding?
The specific documents you would need to raise seed funding can vary depending on the investor and industry. But some common documents that you will need are the pitch deck, business plan, financial statements, and projections.

3.) What are the requirements for seed funding for startups?
The requirements for seed funding can vary depending on the investor, but some general requirements include a business idea, an MVP, a capable team, and an idea of your target market.

4.) What comes after seed funding?
After seed funding, startups typically move on to their next round of funding, which is Series A. This round is typically aimed at helping startups expand their operations and develop their products or services further.

5.) How is Seed Funding Different From Series A, B, and C?
Seed funding is the initial stage of funding for a startup, while Series A, B, and C are subsequent rounds of institutional funding used to expand and scale the business. Funding amounts increase with each round, and investors become more involved in the company’s operations as it grows.


tech

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What is Tokenomics?

Tokenomics is an important concept within the cryptocurrency space that has seen rapid growth in the last few years. The word ‘Tokenomics’ is the amalgamation of two words – ‘Token’ and ‘economies’ which refers to the study of the overall economics of a crypto token that includes critical factors, such as issuance, attributes, distribution, supply, demand and other features. In other words, it explores all the essential parts of a token’s economy and provides a more complete analysis of how coins/tokens work in their respective networks.

A crypto token is a non-native digital asset built by crypto projects on top of an existing blockchain. Whereas economics is a social science that helps to determine how token economics differs from traditional economics. Tokenomics determine two things about a crypto economy – the incentives that set out how the token is distributing and the utility of the tokens that influence its demand. Additionally, it is helpful as guidance to understand how much an asset might be worth in the future.

Major types of tokens

The main types of tokens includes:

  • Security token :- Tokens equivalent to ownership rights to gain access to an electronically restricted resource. 
  • Transactional tokens :- These tokens serve as units of account and are exchanged for goods and services. 
  • Utility token :- Tokens designed for a specific purpose or for some use cases is called Utility tokens.
  • Fungible token :- A representation of assets on a blockchain that is divisible, interchangeable, and not unique. For instance; Cryptos like Bitcoin.
  • Non-fungible token :- Non-fungible tokens represent assets that are unique and non-divisible, like a picture or intellectual property.

Why does Tokenomics matter in Crypto?

Just as central banks leverage monetary policy regarding fiat currencies, the proper design and management of tokenomics allow project teams to create an efficient economy and ensure sustainable long-term development. Tokenomics has a great influence over the future price of a digital asset. 

Tokenomics is a fundamental concept that encourages investors to buy and hold a specific coin or token and determine whether the project can achieve the goals specified in its roadmap. Further, Understanding tokenomics is crucial because it makes one aware of volatility and risk in the market and better assess whether a cryptocurrency is a good investment. 

Why is tokenomics important?

Tokenomics is important because:

  • Crucial aspect of crypto space enabling projects to create trust and strong ecosystem.
  • It has integrated the incentive structure into crypto tokens.
  • Helps to calculate the token value deriving improved decision-making for investors. 
  • Helps projects create micro-economies by enabling them to decode how tokens ought to work within the ecosystem to become self-sustaining.
  • Enables teams to design and adapt to a prevailing model or design a new model that matches the project’s aims.

Key elements of good tokenomics

Creating a good tokenomics model is essential as it guarantees that a project will succeed in the long run. Remember to consider these elements before one makes an investing decision:-

  1. Sustainable spending use cases – The token usability should be diverse and adds value to the entire ecosystem.
  2. Liquidity – Have good liquidity across different pairs and exchanges
  3. Scalable – The ecosystem participants can easily send tokens in fast.
  4. Mechanism to stabilise token price – Projects can choose to allocate a portion of profits to token buybacks in market downturn conditions.
  5. Non-rigid emission schedule – Flexible emission schedule allows a project to be responsive to market conditions and project growth rate.
  6. Design simplicity – Simplistic token design adds investor value.
  7. A good tokenomics should motivate people to use it for monetary and personal benefits.

How crypto tokenomics work?

In the crypto sector, if the supply increases over time, the token then comes under inflationary and vice-versa. 

For example;- A bitcoin is technically inflationary as when the supply increases, it reaches the maximum supply of 21 million. Ethereum is also inflationary, and there are no limits to its supply. On the other hand, BNB is deflationary since the team behind it removes tokens from circulation and reduces the supply.

The next element of tokenomics is managing a cryptocurrency supply during the transaction validation process. Many cryptocurrencies add new tokens to circulation where users who help validate transactions that rewards with tokens, including both incentivising chipping in and increasing the supply.

Deflationary cryptocurrencies are about to remove tokens from circulation. Some burn a portion of users’ transaction fees, and others take a tax out of every transaction and burn part of it. The burned tokens are sent to a burn wallet, an inaccessible wallet address that ensures the tokens are gone forever.

Tokenomics: 5 Factors to consider 

Token utility:– 

The utility is the major part factor of tokenomics as it denotes the use case or the problems it aims to solve. The token utility is responsible for creating demand, which escalates the digital asset’s value if the supply stays the same or reduces. There are many other use cases for tokens. 

For instance:- ETH covers transaction fees, deployment of dApps, and smart contracts. Bitcoin is utilised for store of value and medium of exchange. Governance tokens allow the holder to vote on changes to a token’s protocol. 

Token supply:–

Supply and demand are the primary factors impacting the crypto price. There are two major metrics measuring a token’s supply. One is a maximum supply which defines the maximum number of tokens coded to exist in the lifetime of this cryptocurrency. For instance:- Bitcoin has a maximum supply of 21 million coins. Litecoin has a hard cap of 84 million coins, and BNB has a maximum supply of 200 million. Some tokens such as USDT, USD Coin (USDC), and Binance USD (BUSD)  don’t have a maximum supply. Next is circulating supply which refers to the number of tokens in circulation, where we can add, remove, or lock the tokens. 

Crypto projects also has a direct influence on its price to manage the supply of tokens  in the following ways:-

  • If the token’s supply increases while demand stays the same, it will lead to a fall in its price.
  • On the other hand, the coin’s price will increase with the decrease of the supply (while the demand remains unchanged).

Crypto projects can control the supply of their tokens in the following two ways:-

  • By (not) limiting the number of coins that can be issued (maximum supply).
  • By implementing a price stability mechanism that moves coins out of circulation. (e.g., coin burnings and buybacks, as well as the halving in BTC’s case)

Therefore, it is essential to examine digital asset dynamics that directly impact its supply before investing in a coin/token.

Analysing token distribution:-

Token distribution is a crucial element in tokenomics, where developers of a cryptocurrency initially distribute tokens. No one can use its network or access assets that empower the platform if the project fails to introduce/distribute tokens to its users. Token distribution greatly influences finding out whether a crypto project has the necessary funding to achieve its goal on its roadmap.  A fair launch and a pre-mining launch are the major ways to distribute tokens to the market.

  •  A fair launch is when there is no early access or private allocations before a token mints and distributes to the public. BTC and Dogecoin are examples of this category. 
  • On the other hand, pre-mining allows a portion of the crypto to mint and then distributes to a particular group before offering to the public. Ethereum and BNB are two examples of this type of token distribution. 

Distributing coins fairly among users/communities is generally safer as it significantly reduces various risks. 

Examining token burns:–

Many tokens are burned/pulled out of circulation permanently in crypto projects. When the token’s supply is rising, it’s considered Inflationary. Inflationary

cryptocurrencies add blocks of transactions and mint a certain number of tokens per block. Whereas, Deflationary cryptocurrencies may have a burn schedule or burn a percentage of every transaction. The schedule for adding or removing tokens from circulation is Mint/burn schedule.

Governance:-

Governance is another major element that indirectly influences the future success of a crypto project. The core development team of a project or the governance committees and bodies elected by community members (decentralised governance) will play a significant role in better understanding the crypto solution’s future and the native token’s price. Some key highlights one should consider in terms of the governance model include:-

  • The core team that has the ultimate authority vs a fully decentralised community governance process
  • Whether governance occurs on the chain or off the chain 
  • How accessible is the governance process for the average user (e.g., how easy it is to create a proposal and vote on it)
  • The minimum share of votes required to approve a proposal
  • The core team’s background, skills, and experience (if they are highly involved in the project’s governance)

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Image showing individuals in an investment bank

What is an Investment Bank?

An investment bank is a financial service provider that serves as an intermediary in large and complex financial transactions. These banks provide financial services such as deals in stocks and bonds, mergers and acquisitions, pension fund management, financial sponsorship, and payment solutions for corporate. There are many international investment banks in India. They help businesses and Governments to raise funds through access of capital markets, such as stock and bond markets. An investment banker assist startups to prepares for its launch of an initial public offering (IPO) or when a company merges with competitors. 

Benefits

  • Offers financial services and advisory to individuals, companies, and the Government.
  • Provide insights/knowledge about the risks and benefits of investing their money in other companies.
  • Matches sellers and investors in financial markets and economy, adding more liquidity to markets.
  • Undergoes thorough investigation of the deal/project to minimize the risk associated with the same.
  • Connect investors and companies to makes financial development more productive and promote business growth.

How do International Investment banks work?

International banks in India are often classified into 2 categories:- Buy side and sell side. Buy side of the investment bank aims to maximize returns while investing/trading securities like stocks and bonds. It generally includes with pension funds, mutual funds, hedge funds, and the investing public. On the other hand, sell side of the investment includes selling shares of newly issued IPOs, placing new bond issues, involving in market-making services, and support clients to facilitate transactions.

Based on services provides, Investment banks have three divisions including:-

  • Front office:- Front office is the most important department in an investment banks that creates maximum revenue in an investment banking firm. Some of the front office services consist of merchant banking, strategy formulation, professional investment management, and so on.
  • Middle office:- Middle office services include compliance with Government regulations and restrictions for clients such as banks, insurance companies, and finance divisions. These are the people who manages fundraising and internal control systems. 
  • Back office:- Back office services are the part and parcel of investment bank. The services includes creating new trading algorithms, authenticating data of previous trades of investment bank regulates all operations and technology platform.

Types of Investment Banks

The following are the 4 types of Investment banks:

1.) Regional Boutique Investment Banks

Regional boutique investment banks are smaller investment banks and have small workforce. These banks specialize in providing a range of financial services to clients within a particular geographic region. They typically focus on serving mid-sized and smaller companies, rather than large corporations, and may have expertise in specific industries or sectors.

2.) Elite Boutique Investment Banks

Elite boutique investment banks specializes in providing high-end financial advisory services to clients. They are typically smaller in size and more specialized than larger investment banks, and often work with clients in specific industries or sectors.

3.) Full-service Investment Banks

Also called Bulge Bracket Investment banks, Full-service investment bank are the largest and most comprehensive investment banks that offers a full range of investment banking services.

4.) Middle Market Investment Banks

Middle market investment banks specialize in providing corporate finance and advisory services to companies with annual revenues ranging from $10 million to $1 billion. They mostly deal with mid-market firms, specifically for raising debt or equity capital, as well as mergers and acquisitions.

International Investment banks in India

J.P Morgan

J P Morgan is the leading International investment bank operating in Mumbai since 1930. The firm began by offering commercial banking services and was later spread into other sectors. They offer financial services to clients in more than 100 countries to do business and manage their wealth. As an comprehensive product platform, client’s interest is their core principle.

  • Headquarters: New York, USA
  • India Office: Mumbai
  • Employees: 294,000(Approx)

Goldman Sachs

Goldman Sachs is global investment bank founded in 1869. Its headquarter is in New York. The firm provides services such as investment banking, securities services, global banking, and markets. It serves India’s leading companies and has corporate customers throughout the country. They maintain offices around the world and in India, they have offices in Mumbai, Bangalore, and Hyderabad.

  • Headquarters: New York, USA
  • India Office: Bangalore
  • Employees: 49,000(Approx)

Morgan Stanley

Morgan Stanley is an international investment bank that has branches in Mumbai and Bangalore. They provide best consultation, fundraising services, fund management, research, and investment banking services to Governments, corporations, institutions, and individuals around the world. The firm focus to maintain first class service and high standard of excellence for its clients over 85 years.

  • Headquarters: New York, USA
  • India Office: Mumbai, Bangalore
  • Employees: 82,000(Approx)

Citigroup Global Markets (CGM)

CGM India is a subsidiary of Citigroup Inc incorporated in 2000. It has a large team of experts with industry experience and a strong network providing services such as investment banking, securities trading, and market analysis. Further, CGM is the a member of both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) as well.

  • Headquarters: New York, USA
  • India Office: Mumbai
  • Employees: 240,000(Approx)

BofA Securities India Limited

Bank of America is one of the leading International investment bank. This firm was formerly known as Bank of America Merrill Lynch. The firm was established in India since 1964, which has offices in Chennai, Mumbai, Bangalore, and New Delhi. Further, they offer fund raising, M & A advisory, securities research, trade facilities to its clients in India.

  • Headquarters: North Carolina, USA
  • India Office: Mumbai, Delhi, Chennai, Bangalore
  • Employees: 217,000(Approx)

Deloitte Touche Tohmatsu Limited

Deloitte is the world’s largest professional services network. It is a Big Four accounting firms with operations in over 150 countries and territories worldwide. In 1972, the firm was combined with with Haskins & Sells and merged with Touche Ross to form Deloitte & Touche and later was renamed Deloitte Touche Tohmatsu in 1993. The company offers audit, assurance, and risk advisory services to clients including multinational enterprises and major Japanese business entities.

  • Headquarters: London, England
  • India Office: Mumbai, Bangalore, Chennai, Hyderabad, Gurugram, Pune
  • Employees: 415,000(Approx)

Deutsche Bank

Deutsche Bank is a global leader in investment banking. Its headquarter is in German with its operations in Europe, the Americas, and Asia. As of 2020, it was the world’s 21st largest bank by total assets and 63rd largest by market capitalization, providing various services to financial sector worldwide. 

  • Headquarters: Frankfurt, Germany
  • India Office:
  • Employees: 85,000(Approx)

Credit Suisse

Credit Suisse is a global Investment bank and financial services company founded and based in Switzerland and is engaged in services like private equity, asset management, research etc.

  • Headquarters: Zurich, Switzerland
  • India Office: Mumbai, Pune, Gurgaon
  • Employees: 50,000(Approx)

Barclays Bank

Barclays is a British multinational Bank providing services like private banking, personal banking, corporate banking and investment banking. They currently operate across the globe.

  • Headquarters: London, UK
  • India Office: Mumbai, Bangalore, Delhi, Chennai, Kolkata
  • Employees: 81,000(Approx)

BNP Paribus

BNP Paribus is a french international banking group and is one of the 10 largest banks of the world. They help corporates and its clients in Investment Banking solutions and also offer other global financial services. BNP Paribus has presence over 65+ countries and territories on 5 continents.

  • Headquarters: Paris, France
  • India Office: Mumbai, Kolkata
  • Employees: 1,90,000

Conclusion

Investment banks are popular financial institutions that serve large organizations and companies to take important financial decisions and grow their business. Briefly, They are experts who undergo thorough investigation and understand the feasibility of large projects to assure that the company’s money goes into safe hands.

Next: Discover the reasons behind the recent crash of Silicon Valley Bank.

startup-tips

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To find a co-founder for startups can be a difficult process. Unfortunately, many businesses that get started are destined to fail, simply because there aren’t any good entrepreneurs to help them along the way. 

Fortunately, if you follow these 7 tips, you can increase the odds of finding someone to help you start your business and can find a co-founder easily.

  1. Look for angel investors. Many angel investors are willing to invest in startups that have a strong business plan and a clear idea for the product or service they wish to provide. If you don’t already have some investors looking at your business, you may need to work hard to drum up business. You can do this by having an effective marketing strategy and developing a strong business plan.
  2. Do your research. Research the competition before you invest in a startup. Look at their track records, their target market, and their strengths. By doing so, you can ensure that you will be able to compete with similar businesses in the future.
  3. Find out what programs the competition uses. There are many government programs that provide small business grants. Find out what programs are available in your area, as well as those around the country. When you find several grants that seem like a good match for your business, you can ask for more information about how to apply for them.
  4. Have an easy-to-navigate website. The website for your business should be user-friendly and easy to navigate. In addition to having a website, your website should include contact information and a blog. Having a blog will allow potential investors to keep in touch with you while having easy access to information will allow potential co-founders for startups to learn more about your business.
  5. Look into existing businesses. Before you choose to co-found a business, it is important to find out what other businesses have done in the past. There are many websites that offer lists of businesses that have successfully gone. If there is a local business directory in your area, it may be helpful. Look for companies that have been around for at least five years, as well as smaller companies. If you have a few successful startups on your list, this can be a sign that these businesses are doing well and could be very lucrative.
  6. Take a look at recommendations. Seek out advice from investors who are active in the startup community, as well as those who work with established businesses. A good co-founder for a new business has the skills and experience to draw investors. However, if they do not have recommendations, consider looking for them on your own.
  7. Take risks. A risk-taking attitude is necessary when it comes to finding co-founders for startups. Many new businesses fail because the owners did not take risks. If you have already developed a business idea, find some ways to test it in the market, such as promoting the product using promotional items, giving away trial products, writing a press release, or attending an event. By taking risks, you will be able to find more potential customers.
  8. Do not be afraid to ask for investment. Most investors are looking for companies with a good chance of success, but there are always exceptions. If you are willing to ask for investment, this may be your first step to seek private funding. Be prepared to provide a detailed business plan to your potential investors. Remember to provide financial information as well, so that your investors will have a good idea of your business’s future potential.
  9. Be friendly. Startup companies look for people with a friendly attitude. Many people involved in the entrepreneurial world are perfectionists, so they can spot a potential leader if you are not. Be willing to accept help with aspects of your business, even if you do not need it.
  10. Be sure to be persistent. It can take months or years to build up a successful startup. Persistence and determination are important qualities to keep in mind when pursuing new opportunities. If you try to close a deal too quickly or make sure that a certain company is included in your portfolio too early, you may risk losing a crucial investor as a result.

To find a co-founder for startups does not have to be a difficult process. If you follow these steps, you will likely find many different individuals who are willing to become part of your new business ownership structure. All these guide you to find a co-founder efficiently. If not, keep looking! There will be always investors out there who are searching for companies with which to invest. If you are persistent and responsible, they will eventually come calling on their own.

startup-tips

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It is common for most startups to suffer some kind of funding issues, but this does not mean that due diligence for financing is a bad idea. You might think that due diligence is the same thing as getting a loan; however, there are several differences between the two. There is also the question of whether or not every startup should be looking for angel investors, as well as traditional banks or investors.

What is due diligence and why is it important for entrepreneurs? Well, for starters, when you have a new business, you need to make sure that you find customers. You need to do everything to maximize the amount of traffic that you are able to drive to your business. The best way to do this is to utilize every method that you can come up with in order to gain exposure on the internet. By doing this, you are creating a path towards generating revenue, and it is only a matter of time before your product starts selling.

One of the main reasons to use due diligence when you are trying to raise capital for your business is because it helps you to stay away from the common problems that could prevent you from raising capital. When you are working with a venture capitalist, there are some investors that will look at your business compared to their own business. They will consider your business’ viability. They will also look at the industry that you are in compared to other similar businesses. These things are at the “seed stage.”

After the seed stage, you will need to start bringing in revenue in order to move into the next phase. In the next phase, an entrepreneur has to start looking for venture capitalists in order to raise more capital. However, you will also have to perform all of your due diligence in to make sure that you are raising the right venture capital. This will also allow you to eliminate all of the small business risk factors that you are currently facing.

What Every Startup Needs to Know About Capital Flows is something every aspiring entrepreneur should know. Venture capitalists have been known to lose money, sometimes thousands of dollars, during each financing round. There is always a chance that they will see your business as not being viable enough for investment. If you are able to provide investors and a compelling pitch, they may end up writing you a check. However, there is also the risk that they will simply pass you by.

So, if you are a startup seeking venture financing, then you are going to need to do your due diligence. You need to gather information on the competition that you are up against. You need to find out how their business model is working out. If you can learn what their current issues are, then you can be prepared to address those issues before they arise.

Most importantly, you need to understand the venture that you are going into. As with any business venture, there are going to be risks involved. However, by planning carefully and being realistic, you can minimize the risks. As always, it is your responsibility to protect yourself and your future.

What Every Startup Needs to Know About Due Diligence is something every aspiring entrepreneur should know. However, this is one area where most new entrepreneurs fall short. When they seek venture capital, they fail to perform due diligence. Instead of doing this, they simply dive in headfirst without any sort of preparation. By failing to do proper due diligence, they leave themselves exposed to failure. This failure could cost them everything that they own, including their home and their businesses.

If you are looking for funding, here are some techniques to get more financing from VC. You will get details on presenting your business plan and case for VC funding.

finance

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Equity Capital is also known partnership equity, or joint venture equity. In business, equity means ownership of certain assets that can have common debts or other corresponding liabilities attached to them. Equity is measured for accounting purposes by deducting common liabilities from the current value of the assets.

A partnership is one type of equity investment. When there are two or more partners, each holding a share in the partnership, their equity grows as their holdings’ value is increasing. A limited liability company (LLC) is another type of equity capital.

Its shareholders determine the equity in a corporation. The shareholders typically decide how the money will be invested. One type of equity capital is debt-equity. Debt equity refers to a partnership that has a debt with another firm. The debt is secured by a similar firm with an agreement to pay the firm a certain amount of money if the debtor goes bankrupt.

Many businesses use equity capital funds to purchase land, buildings, and assets for expansion or new start-up ventures. They also use this to buy long-term assets, such as office space, trucks, buses, furniture, and machinery. Other companies make use of equity capital to meet short-term financing needs.

Investors can buy equity capital from firms, banks, or other financial institutions. There are equity funds that sell their own equity. They also sell bonds and mutual funds that combine with equity funds. These types of equity firms are most commonly known as penny stocks.

Penny stocks are typically offered for sale in packages of a hundred or more shares. Investors can buy such packages at low prices. They can be an excellent way to invest small amounts of money since they do not require you to pay upfront for them as regular equity capital companies do. However, you must still follow investment advice for them.

Equity firms also make use of debt to raise funds. Equity firms can take debt to raise equity. If the company that owns the debt goes bankrupt, so will the investors who have invested in the debt. This leaves the business owner having to hire new employees to pay off debts. Some equity firms may also sell their debt to other companies in the same industry to raise it.

There are equity firms available all over the world to assist businesses in raising this. Many equity firms offer websites where companies can browse through and find equity capital they interest in purchasing. These firms allow you to make a list of requirements, such as credit history and years of experience in your chosen field. You then submit your information on yourself. Within a few days, you should receive an e-mail from one of these equity firms informing you that you have to approve for applying it. If this is not the case, you may want to consult with a lawyer specializing in working with equity capital.

Equity Capital is essential in a growing business. When your business grows large enough to be profitable, you will require to pay cash to acquire new clients and meet expenses. If you do not have access to equity capital, you could be unable to pay your cash needs. Equity Capital allows you to obtain resources to grow your business for free.

Some equity firms offer services that make obtaining this easier. Some equity firms may provide you with a checklist you can use to ensure you have met the minimum amount of equity capital required. Equity Capital allows you to save time and money by taking care of the details so that the investor will find you. Equity Capital will enable you to expand your business quickly and with less hassle.

When looking for an such firm, you will want to find one that will work with you. Some equity firms are eager to get start, but they do not provide ongoing support after you have raised equity capital. Equity firms that work with you will want to continue to work with you even after you have raised equity capital. When you work with a reasonable equity broker or firm, they will also want to continue to work with you until your business is going to establish and you have a steady flow of clients. Working with an equity broker or firm will help to ease the transition for you and your business.

After you have raised equity capital, you should consider paying down debt as quickly as possible. Debt decreases equity and makes it harder to obtain future capital. Remember to consult with your broker or firm before you do anything else. With thorough planning and sound judgment, you will be able to find the best loan for your business and use equity capital loans wisely.

startup-tips

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When a new entrepreneur is looking for ideas on how to validate your startup idea, the first thing he should do is to understand the difference between being valuated and funded. Money is generally the most straightforward way to move up the startup ladder as an entrepreneur. However investors are not willing to risk their money in your startup because of your likelihood of failure in the business. So, this would be your first big break as an entrepreneur. How do you go about getting funding for your startup idea?

When looking at potential funding sources, you mustn’t focus too much on the monetary rewards you can provide. It would be best if you highlighted the opportunity they have to help you validate your startup idea. For eg: if you want to obtain a loan from a venture capital firm, you need to highlight your business’s unique selling points. It would help if you showed potential lenders why your business would stand out from the rest. It is also important that you can prove that your business can produce significant profits shortly.

Another method of validating your startup ideas are by engaging different idea validation methods. The most popular ones include metrics, market surveys, interviews, and consumer opinions. By conducting these methods, you can prove to investors that you have a viable solution that solves a particular problem. While it may take some time before you can actually get a loan from venture capitalists but eventually you will get one. But, for now, you must start somewhere.

There is no question that there are risks involved in starting up your own business. So when looking at how to validate your startup ideas you must first weigh the costs and benefits of doing so. For instance: if your startup idea requires a significant amount of capital, you should find to secure a loan. It can be from angel investors or venture capitalists. Once you secure a loan, you will be able to focus on building your company.

However, before you can validate your startup, you must also create a valuation form to present it to potential investors. A valuation form should contain all of the information that venture capitalists are looking for. In addition to this, it should also show to potential lenders that your startup is viable. Also has an excellent chance of going through, and is likely to become successful soon.

You can obtain a valuation for your business right away. All you have to do is visit a local valuation company’s website and fill out a simple application. The valuation will provide you with several details regarding your business. The valuation will include the annual operating revenues, the market share percentage and your estimated cost to start the business. Likewise the cost of purchasing, advertising your business and the amount of time it would take you to recoup your investment.

If you do not have any experience selling products, it may help use a marketing agency’s services. Marketing agencies know which products are lucrative and which ones are not. Furthermore, they know that markets are more likely to want to purchase your startup. This is important because you don’t want to start a business in a field that doesn’t have a high demand. However, it is essential to realize that a good marketing agency will not guarantee a high valuation.

There are other ways of validating your startup idea. One way is to search the internet and check out what other similar businesses have done. Although you should not base your startup idea on what other successful companies have done, it is crucial to research the competition. Look at what they have done to get their start in business and do something different to make yours stand out. When you validate your startup idea by doing this research, you will more likely find that it is attractive to potential investors. By doing such research you will obtain a reasonable valuation and will allow you to raise the funds to launch your business.

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Equity shares are the most common type of equity in India. There are many types of equity shares that businesses can purchase. There are many different types of equity, such as preferred stocks, common stocks, preferred, debt, and retained earnings stocks. Here is a brief overview of some of the most popular types of equity.

Preferred stocks are shares in a company that has been “preferred.” This means that when you purchase one share, you will receive one vote per share. Preferring stocks means that they are less risky for investors. This is because there is less risk of losing money when the companies’ stock price drops. This can be good if you want to have more shares in a company.

Common shares, or common equity, shares in a business that are listed on NSE/BSE. This type of equity share is also known as ‘open stock.’ This means that the company has not approved for listing on the stock market. This also means that the companies have not raised any capital yet.

Debt and retained earnings stocks have different rules. Debt shares allow you to own a large part of the business without having to pay any payment. You will also make payments; however, these payments are not tax-deductible. Residuals on debt shares will stay dormant until the company makes its first sale. Residuals on retained earnings stocks remain active after the initial purchase date and will continue to earn dividends each year.

Private companies can issue equity shares to the public. These shares are known as ‘first issue’ equity shares. The first issue equity share comes with the company’s stock for sale. The proceeds from the sale of the first issue equity share use to make an initial payment to the company. And then the remainder is paid back by the company each year. This allows new private companies to incur expenses and carry on with business while they wait for their initial public offering.

These companies still require to register with the Securities and exchange commission to offer equity shares to the public. Once the company becomes registered, all shareholders will entitled to one annual general meeting. They will be able to vote on certain matters as well as make changes to the bylaws. If a company begins to experience financial difficulty, it must meet specific standards or will delisted from the Nasdaq and will no longer be available to the public.

There are many different types of equity options to choose from. Some common equity types are preferred stock, common stock, preferred or common equity preferred stock, debt preferred or common equity senior preferred stock, treasury stock, debt senior preferred, or equity hybrid. You can also choose from dividend rights equity, income recognition equity, mortgage bond equity, property equity, stock option equity, warrant equity, and warrant equity. You can even choose different ways in which dividends will paid.

Equity shares are not only for wealthy individuals or large companies. Many different websites will walk you through the process if you want to get into the equity game. It’s essential to understand what you are getting into and know how it works before investing your money. With proper planning and research, you can certainly make money with equity.

Most people do not know that companies can issue equity shares to one or more investors. When an investor takes part in a business deal, they make money by receiving shares of the company. The more investors that buy into a company, the more money there will be for the company. The downside to this is that you are diluted. Equity shares are not restricted in how you can use them.

Before you invest in any equity share, be sure to investigate how the company does business. Make sure that you understand their product line and what types of shares they issue. Understanding how they make money will give you a better understanding of whether you will be able to profit from their shares.

Investing in equity shares can be a great way to increase your net worth. This type of investment will allow you to have a larger return on your investment than with most other types of investments. However, you mustn’t caught up in the equity stock market and be blind to the dangers that can involved with it. If you take the time to investigate how the equity market works, you will make the right decisions and avoid some of the risks associated with equity investments. In the end, as long as you have done your research and are cautious, you will be able to turn a profit.

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Introduction

In today’s fast-paced and ever-changing business world, startups are more important than ever. Innovative, agile startup companies are disrupting established industries, creating new markets, and pushing the boundaries of what’s possible. But as exciting as the startup world can be, it constantly evolves, with new trends, technologies, and strategies always emerging. Startups are always looking for new and innovative trends to help them stay ahead of the curve.

In this blog, we’ll take an in-depth look into the latest trends in the startup world, exploring what’s driving innovation and growth and what founders and investors need to know to stay ahead of the curve. From the rise of new technologies like AI and Biotech to product personalization, we’ll explore the biggest trends shaping the startup landscape today. Whether you’re an entrepreneur or an investor, this blog will provide valuable insights and analysis on the latest startup trends of 2023.

So let us go through our hand-picked list of top startup trends of 2023.

1.) Sustainable Technology Startups

startup trends sustainable tecnology

As investors consider sustainability when investing their time and money in startups, brands are turning towards sustainable products and solutions. Many startups have invested in sustainable initiatives in the last two years.

What are sustainable technology startups?

Sustainable technology startups focus on creating innovative solutions that suit our current demands without jeopardizing future generations’ ability to meet their own. These startups employ technology to develop environmentally responsible, socially just, and economically viable products, services, or business models.

Adopting sustainable practices can help startups improve their brand image, attract customers and investors, reduce costs, and comply with regulations. Some sustainable technology trends are improved software that detects harmful emissions, Green hydrogen, Waste management and disposal technology etc. Certain tech startups like Aurora Solar and Bluebird Climate already make their mark in sustainable technology.

In the coming months, we will see a lot of environment-friendly startups across sectors emerge in the market.

Statistic: Leading sustainability initiatives brands are investing in worldwide in 2021 and 2022 | Statista
Find more statistics at Statista

2.) Rise of No-Code startups

image showing startup trends of rise of no codes

No-code refers to web and mobile development using a drag-and-drop interface and requires little to no coding. Non-developers and even seasonal developers use no-code platforms to build their apps more quickly. Many startups building no-code platforms and solutions are emerging, enabling individuals and businesses to develop apps and websites without depending too much on programmers.

The No-code or Low-code apps and websites became popular in 2018 and had been steadily increasing. According to reports from ISG (Information Services Group), a global technology research firm, the global market for low-code & no-code development platforms is valued at nearly $15 billion. It is expected to quadruple in the next five years.

Here are a few of the emerging No-code/ Low-code solutions in 2023:

3.) Shared Economy

image showing startup trends in rise of economy

One of the biggest startup trends over the last decade is the Shared Economy.

A shared economy is an economic model based on the idea that many goods and services are not fully utilized. By sharing them, individuals can save money, reduce waste and build stronger communities. This economic model enables individuals to share or rent out their underutilized assets, such as a car, a room, or a tool, to others in exchange for a fee. This is made possible by online platforms like apps and websites that connect people with something to share with people willing to pay for access to those resources.

For example, the home-sharing service Airbnb allows homeowners to rent out their houses and other private properties for the short term.

Another example is Cloudkitchen, a startup that provides shared kitchen spaces for delivery-only restaurants. Other examples of shared economy services are ride-sharing services like Uber and Lyft, co-working spaces, and peer-to-peer lending platforms.

Technology played a big hand in the growth of the Shared economy model as it made it easier for individuals to connect and exchange goods and services.

4.) Super Apps

image showing startup trends of super apps

It is an all-in-one apps that provide various functions

Super apps are mobile applications that provide users with various services and features within a single platform. These apps typically include functions such as messaging, social networking, mobile payments, e-commerce, ride-hailing, food delivery, and more.

It is an all-in-one platform that offers multiple services under one roof for maximum convenience.

Here are some of the services provided by Super Apps:

  • Delivering food/medicine/groceries
  • Shopping
  • Online Banking
  • Digital payments
  • Video streaming
  • Hotel booking

According to Gartner, Super Apps will be one of the leading Tech startup trends of 2023.

5.) Agritech

image showing startup trends of agritech

Agritech, short for agricultural technology, is using technology to improve various aspects of agriculture. Modern agriculture faces challenges like climate change, global food production, rising demands, etc. So, it’s time to leverage technology to tackle these challenges and increase agricultural productivity.

Agritech has the potential to transform the agriculture industry and help to ensure that farmers can produce more food with fewer resources, contributing to sustainable and efficient food production.

Precision farming, smart irrigation, drone and satellite-based monitoring, robotic & automation systems, biotechnology, and genetic engineering are the main technological advancements in Agritech.

A few of the main agritech startup trends emerging this year are smart tagging of cattle, tech-driven regenerative agriculture, IoT soil sensors etc.

Many agritech startups worldwide are already set to revolutionize the world of agriculture and farming. Here are a few Agritech startups to Lookout in 2023:

6.) Tech And Data

image showing startup trends of tech and data

Remote work has exploded since the covid pandemic and isn’t going away anytime soon. As such, startups have leaned heavily on new technologies, such as predictive analysis, automation and artificial intelligence, to adjust to this new reality and create better workplaces for employees.

Some of the main focus areas of employers are:

Prioritizing and working on these factors help employers measure productivity, improve efficiency, and save time and money.

7.) Startups Focusing on Personalization

image showing startup trends of focussing on personalization

Personalization has become a major trend in the world of startups. According to a study by Deloitte, offering personalized products or services can increase a company’s sales by 10% or more. Even though product personalization is not a new concept, it became much more commonplace after the explosion in the D2C business model.

Personalization is a way for companies to stand out in a crowded market. By offering personalized experiences to customers, companies can differentiate themselves and create a stronger connection with their target audience.

Image showing personalization by Nike

Product personalization has increased repeat customers for many brands despite being more expensive. For example, Nike’s product personalization service “Nike By You” increased repeat purchases for the brand despite costing 30-50% more than their regular selection.

Nike uses Artificial Intelligence, augmented reality and image projection to show customers what their new shoes will look like as they customize them in real-time.

3D Printing

3D printing is a rapid manufacturing technique and another key product personalization aspect. It enables the creation of highly personalized products; compared to traditional manufacturing methods, which typically involve creating large batches of identical items, 3D printing enables the production of individualized items on demand.

Over the past 15 years, 3D printing machine has become both affordable and an increasingly transformational force for the manufacturing industry.

Combining a D2C sales model with 3D printing lets businesses offer nearly endless levels of product customization. For example, FitMyFoot is a footwear technology company which designs and sells 3D-printed custom insoles and sandals. Also they let you customize and order your custom-fit 3D-printed insoles and sandals from your smartphone.

Another example is Activearmor, a manufacturing company that makes fully custom 3D-printed casts and splints.

Other Product Personalization Examples

Color&Co is a personalized hair colour brand launched by L’Oreal. Certainly customers can take one-on-one consultations with an independent colourist via live video or take the colour quiz and create personalized at-home hair colouring kits based on their guidance and the consumer’s preferences.

The largest online jeweller in the world, Blue Nile, offers “Build Your Own Jewelry” options for customers to customize their rings, necklaces, earrings and more before purchasing them.

The fashion Industry has too welcomed customization, and it is booming. Custom-fit clothing manufacturer, Son Of a Tailor, sells made-to-order shirts exclusively for men. Certainly their algorithm uses your height, weight, age and shoe size to create your perfect size shirt.

8.)Quick Service Restaurants

image showing startup trends of quick service restaurants

Quick Service Restaurants (QSR) are fast-food restaurants that serve affordable, convenient, and quick meals. Also these restaurants offer a limited menu and provide counter service, and they focus on providing customers with food as quickly and efficiently as possible.

Indian quick service restaurants market
Credit: Researchandmarkets

Also the QSR industry has been expanding rapidly in India in recent years. The increasing urbanization, busy lifestyles, and rising disposable income of consumers have increased the demand for quick and convenient food options.

9.) EV space to become bigger

image showing startup trends of ev space

Electric Vehicle startups provide earth-friendly mobility solutions as alternatives to traditional petrol and diesel vehicles. Further as the world faces pollution and climate change challenges, it’s about time we think about that daily commute to and from work.

Thankfully, we already have Electric Vehicles (EVs), a more eco-friendly alternative to traditional transportation like petrol/diesel vehicles. Electric vehicles have the potential to significantly reduce the environmental impact of transportation.

EV is a booming market that will see its fair share of startups in the coming months. The Indian EV market is anticipated to hit $15,397 billion in revenues by 2027.

“The growth in EV space is going to continue to happen because of the goals set by the country whether it is cutting carbon emissions net zero by 2070 or becoming 100 per cent electric by 2030,” says Bhargavi Vijayakumar, Partner at Java Capital, told Business Today.

10.) Focus on Climate Tech

image showing startup trends of climate tech

Climate tech startups are companies that develop innovative technologies, products, or services to reduce greenhouse gas emissions, mitigate climate change impacts, and promote sustainability. These startups operate in various industries, such as renewable energy, energy efficiency, transportation, carbon capture and storage, agriculture and food systems, and more.

Indian climate tech startups raised over $2 billion in 2022, according to a report by Tracxn.” There is a focus on climate tech because it provides a gateway to sustainability. A lot will happen in the climate tech in 2023 and the overall sustainability space because investors have started to focus more on the impact side of businesses.” said Anisha Singh, Partner at She Capital.

The latest report on the ‘Future of climate tech’ by Silicon Valley Bank highlights three key takeaways:

  1. Committed to a cleaner tomorrow

Forty-nine countries and 93 Fortune 500 companies have committed to net-zero targets, expanding market opportunities in climate tech.

  1. Reemerging of climate tech investments

US VC investment in climate tech reached $56 billion, which is an increase of 80% between 2020 and 2021, with energy and power experiencing the fastest growth.

(graph)

  1. Exit activity on the rise

Climate tech exits value reached at least $114 billion, with over 104 US companies exiting in 2021, a 70% increase year-over-year.

11.) A new wave of Biotech startups

image showing startup trends of biotechnology

The biotech industry is valued at $414 billion. Biotech startups are involved in various areas of biotechnology, such as drug discovery and development, gene therapy, genetic engineering, agricultural biotechnology, and biomanufacturing. Similarly these companies may work on developing new therapies for diseases, improving existing treatments, developing new diagnostic tools, or creating new biotech-based products.

DNA analysis will become a more wide stream and advanced.

Several ancestry tests have been conducted in the last decade to tell you about your ancestors. Soon our DNA may inform our future actions too.

DnaNudge, a British company specializing in DNA testing, provides a cheek swab DNA test, a mobile app and a “DnaBand” for your wrist. This combined technology allows one to get nutrition recommendations tailored specifically to his/her DNA.

Similarly DNA testing can go a long way, like new AI-enabled products to figure out the best exercise routines or skincare products for your unique DNA fingerprint.

Wrapping Up

There you have it: Top startup trends to watch for 2023. We covered top startup tech trends, including 3D printing, EV and Super Apps. Hence as discussed the Shared economy and its model, and a few gave examples. We also talked about startups and brands moving towards personalization and the rise of no-code startups. In sustainability, we covered EV startups, Climate tech, and how startups prioritize sustainability. Agritech, Biotech and the expansion of QSR are the topics we covered in this blog.

From the rise of No-code startups and the growing Sharing economy to the increasing emphasis on sustainability and the emergence of new technologies like 5G, AI and 3D printing, startups are well-positioned to take advantage of the opportunities.

Check out our latest blog on Kerala Startup Ecosystem.